I was under the assumption that all employers are supposed to provide continued health coverage for an employee after they leave for a certain length of time.
2007-10-10 17:38:18 · 6 answers · asked by Murry 2 in Business & Finance ➔ Insurance
No. Your employer isn't required by law to continue your health insurance policy. Your health insurance may be terminated on the same day as your employment terminates but most companies continue the coverage until the last day of the month in which you employment termination. (If the state of NY has a different law, companies set-up the plan in a manner to avoid state laws and are only subject to Federal Law. You can write the NY Insurance Commissioner for additional details related strictly to NY.)
However, under the federal COBRA law, your employer must provide you will the option of continuing the health insurance at your own cost. The employer is obligate by law to send you your rights of continuation withing 14 days of the termination of coverage.
The premium will be the amount the company is currently paying per employee but a 2% aadministration fee. Since the group premium charged to an employer will be less than an individual health insurance policy for the same benefits (if you can even purchase benefits at the same level), it is normally to your advantage to take coverage through COBRA. The employee must allow you to pay for your own coverage under their group plan for 18 months. If you are disabled at the time your employment terminated, you are eligible for an additional 11 months of coverage by the premium is 50% higher than premium being charged to the company during that time period.
2007-10-10 23:46:59 · answer #1 · answered by ALR 5 · 0⤊ 0⤋
If the company is under 20 employees they are not required to provide cobra coverage pursuant to federal law.
However; you may qualify for something called conversion which is often not cost-effective unless you have disqualifing conditions that would not allow you to secure insurnace elsewhere.
Conversion would be a topic that you would need to address with the previous insurance carrier. The carrier is not required to offer you such so you must be proactive.
New York is tough in the small group arena given that it is one of the few state left with community rating.
2007-10-11 02:58:01 · answer #2 · answered by Dimples_in_NJ 3 · 0⤊ 0⤋
The government will be deducting the cost of insurance to pay for the "Public Option", whether you use it or not. Requiring your employer to pay for your group insurance will drive many small businesses out of business - which means their employees will have to go on the government plan. See how that works? Bash, there is legislation being proposed that would require everyone to have health insurance - so that's another "choice" taken from us.
2016-05-21 03:18:59 · answer #3 · answered by ? 3 · 0⤊ 0⤋
Your assumption is incorrect. They are not required to provide it. They are required to offer the option of COBRA - where the employee pays the full price, plus admin charges, if applicable, for the same plan they have already. It then becomes the employee's choice to accept it or not.
2007-10-11 11:21:28 · answer #4 · answered by zippythejessi 7 · 0⤊ 0⤋
Not true. If they are subject to COBRA, ie, if they have at least 20 employees, they have to offer you the option of keeping your health insurance AT YOUR COST - which means you pay the full monthly premium, plus a small administration fee.
2007-10-11 03:06:13 · answer #5 · answered by Anonymous 7 · 0⤊ 0⤋
Yes and no. Under most circumstances you have to be offered COBRA insurance if you have had group insurance through the employer - but the employer doesn't pay for it, you have to.
2007-10-10 17:44:46 · answer #6 · answered by Judy 7 · 1⤊ 0⤋